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>> it's a tale of two stories on wall street. the bulls betting on morgan stanley and the bears working to take down the mother of all chipmakers. good afternoon everybody. i'm liz claman. it is the last hour of trading on this friday. countdown to the closing bell begins right now. financial biggie morgan stanley having its best day in 7 month ts. jumping $1.66 in blowout quarter. revenue smashing estimates. one of wall street's heaviest hitters the guy running the show morgan stanley chairman and ceo james gorman in the house gearing up for his one-on-one interview with charlie gasparino. that's coming up in just a few minutes. you don't want to miss that one. i don't care who else interviews james gorman, it is charlie. he is the guy you want to hear interview jim gorman. you have intel, the biggest drag on the dow jones. shares are dropping by nearly 7%. quite an interesting story here. q4 earnings per share topped

analyst estimates margins improved but investors headed for the exit once intel said it would ramp up capital spending, 13 billion in cap ex in 2013. that's up from 11 billion spent last year. the problem investors have with that is that the spending comes at a time when there are some questions about chip demand. but intel chief financial stacey smith telling me intel is ramping up because the future looks bright. >> for 2013, we're forecasting low single digit revenue growth. and my expectation is we will see some acceleration in the back half of 13. when i kind of think about the year, you have a couple of tail winds that i think kick in. liz: the intel news weighing on rival advanced micro devices which is down about 30 cents or more than 10%. shares are tumbling but interestingly enough applied materials is the company that makes chip equipment that intel would buy to ramp up the cap ex, that stock is moving higher.

morgan stanley on the upside. but from fireworks, we go to the deafening sound of a very quietly tentative market. the s&p has just turned positive. that's not a bad thing as we bring in our traders from the new york stock exchange cme group and the nymex. we have consumer sentiment coming out in january at one year lows. is that what's tamping down what could be a slightly better market? >> well, it's part of the reason. it's something we have seen for the last year. you get a mixed bag of economic data, some good, some bad. i think what's really happening right now is just complacency in the marketplace. if you look at the vix, the volatility has been taken out of this market, traded in 20 handle range on the s&p all week long and we're just here, an expiration day, even the volumes are up. we are not getting a lot of action in here. liz: at 1481 for the s&p, now one point above the 1480 level, obviously. captain obvious here. i look at this and say wait a minute that's not a bad level to look at certainly, why does that

not generate more action for the bulls? >> i think they are waiting around. there's nothing real compelling in the market or in the economic data, it looks okay, not blowout economic data. we are waiting on earnings. we got a lot of the bellwether financials this week, some good, some bad. next week is when we start getting them in earnest. they will come fast and furious. take a look at the industrial companies as they start to report, i have a good feeling about the industrials, what they are going to do. we saw ge today. that's the biggest of the industrials. and their earnings were good. that will be a bellwether and set the standard for the rest of the earnings season and what we do for the economy in the next two quarters. liz: and andrew, you could say -- what are you looking at as a trader going into what could be a little bit of a rocky february? we have half of january left or a little under that. what do you think? >> yeah, as we talk about the vix, the vix has not been up one day in all of january, already at january 18th, the vix futures have not been up one day.

the market seems like it wants to go higher. i trade a lot with price action and price momentum, it seems like 1500 if not 1525 is in the cards very very soon. nothing is derailing us. we had bank earnings. morgan stanley, goldman sachs trading at 52 week highs. we had a bit of sell off in wells fargo and also jpmorgan. it is very stock specific. we saw intel down as well. next week, i'm looking at big cap technology stocks, earnings from apple and google -- liz: yeah, how about that. >> that's going to be important. liz: down again about 3/4 of a percent. i mean really? this is 11 month lows here andrew. >> if you look at apple, when i was trading on the floor i was in the apple bit, i've been sport it, i continue to be short it -- i've been short in it, i continue to be short in it. apple looks so weak. you took any chart, that is the weakest stock on the daily. most likely i will get out of my position before earnings but it looks like it wants to go lower.

liz: all right. let me get to the nymex because we still even though pulling back alan, still above $95 a barrel which i find very interesting. you've got the situation certainly that's always tense in the middle east, but nonetheless the actual fundamentals of this, we have got supply. >> yes. well i do think there's quite a bit of supply but right now at the moment i'm bullish in crude oil. i think we get to 97 1/2 to 98 dollars at that point i'm going short i think it is a huge sale. i think we get down to 91 after that. natural gas i want to highlight for a moment too. if we break above 3.58 or settle above 3.58 it's a buy, i think we're heading up to 3.68, 3.74. i have been very bearish on natural gas but i turned bullish when we got to 3.05, 3.07 level. if we get up to 3.75 level, it's a big sell. liz: we are at 3.57 right now. all right, good to see all of you guys.

thank you very much. did you know there is actually a lot of oil and energy used to make carpet? take a look at this. can you hand me a piece of it? i'm going to hold this up because it kind of matches our set and we're looking at pictures of it right now, absolutely beautiful. but here it is. would you guess this is made from recycled material? i'm telling you it is pretty soft. but the recycled material is everything from old yarn to fishing wire. interface, you may know this company if you get the catalogs for flor. it one of the most eco-friendly brands in the world and the stock is quite investor friendly. joining me now is interface's ceo and president. you guys had a very bizarre ticker, which i'm not going to remember anymore because today you are switching it to a very simple one, tile because your carpets come in tiles. correct? does this do anything when you change the ticker to something more memorable? >> it says you are hip.

[laughter] >> the genesis of that is that we invented tile, we pioneered it in 73, the largest player in the world and why not claim tile category so we're going to market ourself as tile on nasdaq. liz: it is doing right now on the new ticker symbol it is moving higher by under a percent at last check here. you are a classic case of making money from turning what some people might consider trash to treasure, that is these carpet tiles out of sustainable sort of reusable material which i find very interesting. i love to see us using trash, turning it into something that's usable. what is the newest effort that you're making right now to continue to really surprise people with the carpet and what it's made of? >> it is called networks. we've piloted it. we are trying to create a fair

trade agreement with them. we're going to harvest fishing nets with fishermen. we've got 15 villages signed up. liz: these are old fishing nets? >> old fishing nets. liz: stuck in coral reefs and hurting sealife. >> sealife for sure. we're going to ship them back to our supplier and recycle them. that's one initiative. we have 100% post consumer recycled products today in the marketplace, fishing nets is one. we're actually recycling old carpet today as well in a program called re-entry. liz: look at the carpet itself. we have a lot of pictures of this and you caught my eye recently because i always get your catalog. my basement have been flooded twice because of hurricanes that have come through and hit new jersey etc. i kept thinking i want value that's going to hold up, and if a certain portion of the rug is hurt, i don't have to cut it out. this is perfect. these are tiles that you can mix and match. >> correct. liz: and fit to the exact room.

if something stains one piece you pull it out and add another one. you can't even see the difference. >> right. we call it design by tile. we have three stores in new york that you can go out and buy today. we have 18 stores around the united states. and it is really hip and cool to design your floor. think about an 18 inch square, you can do anything with that design. liz: your stock is up year over year. people who are investors here are watching at the moment. to what do you attribute this move? you know it is not like you guys are a netflix or an apple or jpmorgan or morgan stanley, right out there in the headlines. >> i think that the marketplace is looking for an up turn next year. but i think that there's a tail wind that they're anticipating. we are actually 50% outside of the critunited states -- outsid the united states. liz: what's your biggest market?

>> united states. >> after that? >> australia. >> you actually have big corporate customers. >> we do. >> i believe an airline? >> southwest is putting on their airplanes. >> is it holding up because there was some question about it being a little -- that the wear -- are you fixing that? what's going on with that? >> we're going through redevelopment and fixing the wear on the planes to create the eco planes but yes. liz: you get to ring the bell today. >> yes, we get to ring the bell today. liz: congratulations. you have heard of the product flor, the company is interface. the ceo and president. thank you very much. >> good to see you. thank you. liz: good to see you. closing bell ringing in 50 minutes as morgan stanley's

stock continues to move higher today, now up 7 1/2%. charlie gasparino is carpeting this story, morgan stanley chairman and ceo james gorman talking shop with charlie. so much ground to cover, the debt ceiling, morgan's compensation plan, facebook, charlie's touching all of the bases and more. morgan stanley chairman james gorman before he jumps on a plane to davos is coming up next. you cannot afford to miss it. what are you doing?

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liz: so the power mover of the hour is making its wall street debut on the nasdaq today. this is a company that is jumping more than 10%. it is a real estate investment trust. this company particularly specializes in renting out data centers. its initial public offering was priced at $19 a share, well above the expected range of 16 to 18. so adding on to that, looks pretty decent right now. but just so you know, at 20.99 the stock did open at exactly 21. so we're watching this one. not a bad ipo there for that. and since we're on the topic of tech, you really have to stick

with fox business next week. i'm going to be in davos switzerland at the world economic forum talking to all the big names in business, world leadership, technology, including paul jacobs, qualcomm ceo, many people aren't even aware that qualcomm's chips are powering their every day lives. we're talking smart phones. paul jacobs owning it in that space. he's becoming known as kind of the smart phone king. so be sure to watch that interview. i'm going to pick his brain about all things wireless and where he really believes that the wireless trend is going to go. are the phones get more expensive bigger like we saw in the consumer electronics show? we're going to watch that. we will hear from him. paul jacobs and so much more coming up from me next week at the world economic forum. i want to check morgan stanley. it is one of the biggest market gainers today. the stock trading at a 52 week high. after the firm delivered better than expected earnings, blowing away wall street estimates. this gain of about 7 1/2% is the biggest one-day gain in more

than 7 months. let's get to the guy who runs the show, no, not charlie gasparino, sorry charlie, but morgan stanley chairman and ceo james gorman with charlie gasparino. >> what? i don't run the show? liz: sorry. >> congrats on a great quarter. >> thank you. >> you have been predicting this for a while that you were going to hit this point where from that point on, things would be pretty consistent, you know, because you guys were up and down in terms of earnings. you had some issues. you hit that. you believe that you've hit that point where now it's -- you've got to run the business and the business is profitable; correct? >> yeah, the way i think about it charlie it's been -- the crisis was 08. we had issues before that in 07 with the whole unwinding of the mortgage market. so ii's really been five years of both sort of falling into the pocket and then working our way out of it. in the middle of it we did this huge deal buying smith barney. we were doing stuff aggressively strategically but playing a lot

of defense in fixing cleaning up, moving on rebuilding and i just feel like this is a pivot point. and honestly the fourth quarter was good. it wasn't perfect, though. there's a lot still to go, but this is a pivot point where now we focus on running the business. >> so much of your business, speaking about smith barney, you are going to assume all of their brokers, right? something like 18,000 brokers the biggest brokerage firm in america. so much of your business has to do with the small investor. yet we know the small investor is not really in this market. they're out of it in a major way. how can you predict consistent earnings or this is a pivot point when you know the small investor isn't in it? >> that's a good question. the interesting thing is even with the small investor on the side lines the business is showing remarkable resilience. so with 0 interest rates, very little new equity being issued, and very little investor confidence, the market is showing great resilience. but again, our investors, we have small investors but we also

have very large investors so we run the gamut, i think, you know, i've watched the flows and i just feel like with the recovering u.s. economy, investors 401(k) plans are up, last 12 months significantly. >> do you think there's any pivot point to get the small investor back into the market that's coming? >> that's a good question. i don't know there's a real moment that does it. i can't think of what the big epiphany where everybody says oh i got it, but i think it's just a growing sense of confidence. we needed europe. we needed greece to stop looking like it was -- >> right. >> we needed europe to stabilize broadly. we needed the chinese leadership transition to happen and happen seamlessly. we needed the election to be past here. we needed the start to the fiscal cliff resolution. all of those things are starting to happen. confidence is growing. unemployment is ticking down. so i think it's more a gradual shift. >> right. one of the interesting things about morgan stanley is a couple years ago people were actually

predicting your demise, like morgan stanley would not be there, it would have to merge, it didn't have the earnings power. i guess this is proof positive that that wasn't right, that you guys can remain independent. you see yourselves independent in the future? >> absolutely. we're -- i don't know what our market cap is today, but 40 billionish -- >> right. >> -- type company. we're now a very large and very connected global institution. >> right. and you're still either number one or number two in m&a which is interesting. a lot of people thought in order to score these m&a deals you would need a commercial bank attached. you don't obviously. you don't even have to lend that much money you do in these deals. the question becomes then okay why do we need big mega banks like jpmorgan? do you think we need them? and do you think at congress at some point will look at these institutions and say gee they are too systemically crazy,

let's break them up. >> i don't subscribe to that view at all. i actually think it's flawed logic. the biggest banks in the world are not the u.s. banks. >> right. >> they're chinese, japanese, the swiss banks the french banks, there are a lot of big banks in australia. >> why do we need big banks here in the u.s. that are systemically important? systemically risky? do we need them? >> firstly, as a percent of gdp, the size of the banks in this country compared to any other industrialized companies in the world -- countries in the world is smaller. they are less systemically important to our economy than switzerland france canada australia japan china you go down the list. number one. number two, global corporations, companies like ge, they need balance sheets the size of what our major banks have in order to support their businesses globally. >> so you guys -- i mean, why wouldn't they just do all their business with jpmorgan instead of morgan stanley? >> there's a range of businesses. you have correspondent banking. you have trade finance.

you have project finance. you have commercial lending. there's a whole range of businesses. >> so you think you could survive even if they don't break them up? >> our survivability is not an issue. the question is how much we're going to thrive and how soon. i think the market's response today reflects that. in defense of our competitors, and there's a bit of a push now about this whole break up the banks, i think it is dead wrong. >> do you think they will do it? >> i pray and hope that we don't do it. >> do you think congress will take it up? >> no i do not. i think it will make america less competitive. >> you don't think they will take it up? >> they will take up the debate. the reasonable people will get through that will recognize that it's an essential element of american competitiveness and there's actually no industrial logic for it. >> when do you think this debate will really start happening? >> oh, boy, i think it started and i'm sure in davos which i'm heading off to next week -- >> and liz is going there too.

so you can say hi to her. >> okay great. >> let's talk about national politics, national economic politics, your cfo, very talented at morgan stanley. mentioned as potential number two to jack lew. is she going to take it? >> i have no idea what's going on. all i know as you said ruth is very talented. >> has she talked to you about it? >> no, she's my cfo. her obligation is at morgan stanley. i have no idea what the future will bring. she's very talented person. we're proud to have her on the team. >> if you lose her? >> we're a great organization. these organizations, listen, we all move on at some point. >> absolutely. >> we're all at some point -- these are great institutions. >> what do you think of jack lew? the guy who is going to be treasury -- >> personally i have only met

him once or twice myself. i have a lot of respect for him. he's enormously competent bright guy he has the president's confidence. i look forward to working with him. >> are you worried about the debt ceiling in terms of your business and the economy? i know the republicans are now pushing for a temporary sort of increase it temporarily but then we'll be back debating this again. first off, i'd like to ask you, should there be a debt ceiling? hank paulson, former treasury secretary says there shouldn't be one. president obama thinks there shouldn't be one. do you think there should be a debt ceiling? >> listen, i prefer having a ceiling. i prefer having that sense of discipline. >> right. >> i like everybody else in this country, including the politicians have been frustrated by our inability to grab this issue by the throat and start doing something about it for the future of our competitiveness. now, we had a start with the deficit reduction efforts. >> right. >> prior to that i thought the bowles simpson commission was a powerful response to what we could do about our own deficit.

>> why do you think the president ignored that? i mean his own commission, he ignored it. why do you think he did that? >> i can't speak for the president charlie. >> why do you think it got no traction then? >> this is politics. this requires two parties -- you had the republican party had to concede something on the take side. the democrats had to concede something on the spending side. the way i saw it with the spending cuts that were in process already and with the growth in the economy, we needed 2 of the 4. it was pretty straightforward. tax increasing and spending. business people would get this deal done in an afternoon. this is what we do. >> maybe that's why ruth should go to washington. >> do you think bowles simpson is dead? will it ever come back? >> it's provided the energy of a

we need bipartisan and both ingredients to make it work and we need sense of urgency because it's really important. that to me what bowles simpson was all about. >> now to wall street. are you telling investors just accept, this is it, what we have today? >> well, investors i think appropriately should be looking at risk adjusted returns. so -- >> sounds like a yes? >> no, the era of very high but very risk driven returns is over. okay? so what investors -- capital is doubled. leverage has been cut by two thirds. those are facts. now, the question is, but the quality of the returns you're now getting, i would argue is more stable, more predictable and more secure. >> right. and the compensation is lower. i thought it was pretty shocking what you guys did this week is

that you basically said deferred cash bonuses to your biggest producers for three years. number one, did the activist investor, dan loeb, was that his idea? >> first that's not exactly accurate what you just said. 82% of you are employees will get 100% of their compensation. the remaining 18% had the cash deferred over three years but over that three years 25% of it is paid in four months. >> it is still pretty radical. >> understood, but charlie 50% of it is paid out this year. >> okay. >> so it's not deferred over three years. 50% this year. 25 next year. 25 the year after. >> it's staggered over three years. >> absolutely. it's a deferred process. >> the timing was impeccable.

we find out loeb has now taken a stake in morgan stanley the activist investor from third point capital. now all of a sudden this gets announced. >> completely irrelevant. >> nothing to do with each other? >> absolutely nothing to do with it. the only conversation i had with dan loeb was to welcome him. i'm delighted to have him. i like to see somebody who also thinks the stock should go to 40 bucks, why not, this is a great thing. he's a smart guy and he's figured morgan stanley is on a turnaround. >> that's a good point. did you hear from some of your producers? >> this was a very planned event over a period of time. as you know, we have been deferring compensation for the most senior team, all my operating committee has had 100% deferred for the last several years. >> you haven't heard a lot of complaints about this? >> listen, give me the money in the future or give it to me now. 100% of people would say give it to me now. give me part of the money in the

future or don't give it to me at all. 100% would say give part of it in the future. >> why are you doing it then? >> we're doing it because we want to tie our employee actions to the business decisions we make and make sure we're aligning their interests, the interest of shareholders with what we're doing with the business. we're also doing it because we're digging out of this crisis we have been in and we're trying to make sure we pay people. >> interesting thing about facebook. you guys took a lot of heat over the facebook ipo. i think some of it was warranted, some of it wasn't. shares of facebook are now trading about where they were; right? >> yeah. >> in the 30s. however, there's an issue with the ipo process where you guys -- this is totally legal, but you did it, you guys gave certain guidance to institutional investors, individual investors didn't get that guidance. not saying it is illegal. it is clearly legal. however, should that process be changed? >> i don't think it should be. personally i don't think it should be. there's a reason for that. the reason the process was put

in place was that individual investors would not be whip sawed by the latest piece of research that might cause them to suddenly thunder into the stock which is actually what everybody thought was going to happen on facebook. many pundits the day before facebook thought that stock was going to 80, not to 20. the smart money had it going to 80, not to 20. the rule put in place and i guess it was the sec was designed to protect individual investors. question for you charlie, would individual investors have acted differently in buying facebook on that day if they knew that one analyst had changed his estimate of the next year's revenues by i think it was 5%? >> maybe. i mean i'm just saying that if you gave them the guidance -- if you gave the same guidance, it just seemed like it was unfair that individuals did not get the same guidance in some -- i'm not saying you had to, like, have mass meetings with individual investors, but you have the biggest brokerage sales. you could have had every broker tell their client here's what we

hear right now. what would have been so bad about that? >> it's not that it's so bad, we're following the rules. >> i know you are a good guy. how about doing the right thing? >> what do you mean we don't do the right thing? >> no i'm not saying that. the right thing would have been to give everybody essentially the same information. wouldn't it? >> i disagree with that. for this reason, let's assume a lot of investors had decided not to go into this stock on account of last minute advice of one of 17 analysts or whatever, and the stock went up. how is that doing the right thing by helping them miss out on opportunity? it could have gone either way. i appreciate the point. we did what -- we followed what is obviously industry practice and required. i personally happen to think it is wise practice because i think it is more often going to go in the reverse direction. you get a little bit in these reports and all of a sudden

everybody is buying into a stock. i thought it was prudent. >> last question, you and bob greifeld, head of the nasdaq, i guess you could -- [inaudible]. have you guys made up? >> we had a discussion. >> would have loved to be at that discussion. >> we had a discussion and we moved on; right? it is a big world. what i care about is that facebook's come back and a company that is at the essence of american innovation, 60 billion dollars company, got created overnight. >> right. >> that's back. that's what matters. >> i tell you what's great about wall street is what people forget is that wall street, firms like morgan stanley create those companies. >> that's right. >> which is a good thing. >> that's right. >> anyway liz on that, back to you. liz: we had a little discussion. james we will see you in davos. thank you very much. >> bye, bye. liz: great job charlie. this breaking, the numbers for

that lance armstrong interview on oprah's own network bringing in 3.2 million viewers, pretty significant for that brand new relatively new network. listen, i guess a lot of people wanted to see this -- well, charlie had a run-in with this guy at a restaurant. discovery stock is up about a third of a percent. closing bell ringing in 27 minutes. we've got the markets moving higher. now the dow is up 26 points. not bad. we warned you, how pension fund shortfalls could be impacting companies you're investing in. you need to know this because first it was sears. now at a tshgs aet&t big adjust

numbers and today is the last day before i take off to davos switzerland and the world economic forum. james gorman is coming and also paul jacobs of qualcomm. a whole list of business superstars for team davos. those are my producers and camera people. we'll be doing more than making snow angels, we will making news with huge guests, everybody from jamie dimon to others. i will get to the names when we come back. stay tuned.

>> i'm sandra smith with your fox business brief. hsbc will pay 249 million dollars in a settlement with the

federal reserve and office of the comptroller of the currency over foreclosure abuses stemming from the so called the signing scandal. the transportation security administration confirming that it is pulling the plug on the airport scanners that leave nothing to the imagination. starting in june, the tsa will stop using the scanners manufactured by a company. privacy right activists have complained about the scanner. the tsa plans to continue using a scanner that is considered less invasive. unemployment rates fell in 22 states in december. there are 25 states where rates are below 7%. nevada and rhode island are tied for the highest unemployment rate at 10.2%. now we continue our countdown to the closing bell with liz claman. liz: shares of norwegian cruise

line sailing today after the company's ipo this morning. let's head over to nicole petallides. nicole: it is cruising along quite beautifully, all the puns, we're throwing them in but the truth is that norwegian which had its debut on the nasdaq today priced at $19 which was above the range and yet the stock soared past that. it was up 30% throughout the day. it's been soaring certainly a great great ipo. right now i'm actually standing at the carnival cruise line so you know there's norwegian, carnival, royal caribbean those are the three we check now when we talk about cruise lines. let's see how carnival is doing here. it is up about 1%. i just checked the analyst ratings on carnival. over 20 analysts cover carnival. but more than half have a hold rating. however, on royal caribbean, about 60 something percent have buy ratings. so it's interesting to take a look at how the analysts feel about these names.

but they have been soaring all yearlong, liz. they have had a great 52 weeks and today norwegian with its ipo has a great start. back to you. liz: first cruise i ever took was on what they called norwegian caribbean line, ncl back then. my dad, let's go to haiti, thanks. ta is the latest in a series of companies to maneuver its pension plan in an effort to control costs. at&t is warning today that it is going to see a 10 billion dollars charge in order to do what they want to do to get the company back sort of on track here. liz macdonald with more. and it's important to an investor who owns the stock that the pension issues do matter. that's right, liz. it is not just state and local governments, corporations. in fact a t and t is not the only company we're looking at. basically you are seeing big

names, 100 top corporate pension funds are underfunded, record deficits. here are some of the names of the companies that are grappling with big fat pension costs. you are going to see adm, caterpillar, alcoa in here, underfunding on the order of 412 billion dollars for these companies. mercer came up with similar results, 557 record billion dollars deficits in the s&p 1500. and what we're talking about is what's going to happen down the road. investors are going to see these weird bookkeeping charges that are just paper charges, not cash charges just yet meaning they are going to be tossing their own company stock in there to do whatever they can to pay for the returns that are underperforming in their pension plans. i have to tell you something, these companies, do you know who they are blaming? the federal reserve. they are blaming low interest rate policies for ruining their expected rates of return so when they don't come up with the returns they expected, they have these shortfalls, right liz?

a little controversy going on. >> calpers is doing pretty darn well. that's a big pension. they have finally gotten back to where they were before the crisis. there's a lot of blaming going on. you look at the super smart money out there, somebody is doing well. >> the liability side of the balance sheet that's when you see the underfunding problems, that's when you see these guys blaming the low interest rates from the-p because they are not getting the returns they expected. -- because they are not getting the returned they expected. wait a second, what are investors are going to see down the road? they are not cash charges. they are on paper. liz: this is a warning. liz macdonald lets you know well ahead of these problems. >> that's right. liz: thank you liz. we're now up 31 points. we were not near our high of the

session when we went into this hour. now we are. coming up the troubles with the boeing dreamliner, not changing my next guest from picking an aerospace name. they are not worried about the boeing issue. they say they don't have exposure. coming up a chief investment officer has a bunch of other names he sees flying high. we're gearing up for our big trip to davos switzerland. fox business at the world economic forum getting one-on-one interviews with some great minds out there. here are just a few: marriott international ceo, imax ceo, bob greifeld, you just heard him talked about, so much more, live from that beautiful background, davos switzerland. we will be right back.

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liz: research in motion, rimm has been a tear but the rally actually creating a little concern for some investors. you know, charles payne was making this point. watch out for a rally because is there really sustainability here with the product line that's coming out? nicole: right. so here's a couple of factors. number one, the blackberry 10 comes out on january 30th. that's fact. that's tangible. what we're watching also though are the shorts are getting squeezed. these are the people who -- and we have seen the shorting interest really exploding since early 2011. those shorts are getting squeezed now as the shares continue to rise. you see those shorts, the people who are betting it was going lower are now getting caught and so they either have to buy back here at these higher levels, right, and so this is why you're seeing it continuing to rise. the question is, are there real

buyers who really think it is soaring or is it just the shorts getting squeezed? in the meantime, there has been a lot of great talk about the blackberry 10. everybody's eagerly awaiting new apps. you have the carriers all on board. of course i always keep my handy dandy blackberry that still has the roller on the side and the really big buttons. i still have the old one. liz: the technology museum in silicon valley is on the phone. they want that for the museum. nicole: it never dies, liz. it never dies. liz: i'm with you. i'm full on blackberry. i can't do the virtual key board. forget it. it is not happening. thank you nicole. would you not love to have this as a return on a single stock pick in your portfolio during the whole election fiscal cliff run up while everybody else is worrying? you would have bought this back in october had you listened to

my next guest, it's up 24% since then. what other small caps would fit into that type of pick and bring you money today? joining me now in a fox business exclusive, palisade capital management chief investment officer, 3.7 billion in assets under management. some of that a great pick with genesse and wyoming. >> you know, we have said, we have talked about this a lot, pro cyclical, global economy is gradually improvinmproving. the best thing to do that is through u.s. companies like genesse and wyoming and others. liz: define pro cyclical. everybody has a different definition. >> right. we have been in this long drought of predictable growing economic activity. in china we have seen stability there and a slight up tick but not just in china but in other geographies as well.

you don't have about small cap having exposure there, but many small cap companies do including the genesse and wyoming. liz: let's get your macro picture now on what's happening. i hate being a pessimist and i'm not, but when you see since the first of the year suddenly we're hitting more than a couple of five-year highs on the s&p 500. is the run-up too quick and are we heading for sort of a mini correction? >> well, we talked about last year that we had uncertainties to overcome, whether -- first, it was whether obama care was going to be the law of the land, then who our president was going to be, and then last piece in the puzzle, which unfortunately is going to take a little while to figure out is the fiscal cliff because the next component of it is going to be the debt ceiling. so i mean it is going to create some uncertainty. if we get into real tension

negotiations, you know, it could be ugly again, and i don't see a big huge drop, but we could see a lot more volatility. liz: dan is tuning out anyway because he has a whole bunch of picks that he hopes will have the same type of return that he had for six months on genesse wyoming. your first pick is down 10% over the past year, it's an aerospace pick. >> one of my best analysts did great work on this. it's been a holding on us. owned more and owned less. great longer term holding. they've hit some speed bumps, but we feel comfortable as they're in a good position as the aerospace area continues to grow. they sell into airbus and other boeing products as well. liz: they are covered. >> they are more than covered. liz: you have two financial names, raymond james is up, but i want to talk more about lazard as well.

we may cycle through raymond james to show our viewers that. but lazard up 24% year over year. that's great. but you know, when you look at what they did under bruce wasserstein, took over at the ipo in 05 that return back then was something like 74%. we talked about it back then. >> exactly. liz: you still like it. where are those wasserstein-like returns and will we see that again? >> hidden within lazard is an asset manager geared towards the emerging markets which very few people talk about. they're only viewed as a broker and obviously m&a advisory. i believe we're at the early stages of m&a super cycle. i think that's going to be great for companies like lazard. liz: thank you dan. palisade capital management executive vice president. let's talk about the closing bell in 6 minutes. i'm revealing more names that i

will be interviewing from davos switzerland. first, we are talking to the medtronics chairman and ceo. plus coca-cola's ceo. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office.

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[ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. >> welcome back. i'm david asman along with yes this is liz claman. she's staying for another hour. i had to twist her arm. she's here. let's go to nicole petallides at the new york stock exchange. we've got to talk about intel. we saw it here first yesterday. we had the cfo on. i mean, boy, they are getting hit hard, almost 7% to the down side. nicole: that's terrible if you are a shareholder today you're